- Created by: paulhaswell
- Created on: 21-05-18 09:51
How did the government exercise control over the economy between 1917 and 1928?
The nationalisation of industry
- Lenin had no real plan for the transistion, so resorted to trial and error
- They first resorted to 'State capitalism' - a transitional phase which kept on bourgeoisie experts
- There was also the issue of retaining control once the peasants had the power
- The key measures of Lenin's initial policiy were:
- October 1917- 'Land decree' abolished private ownership of land - pleased peasantry
- November 1917 - 'Decree on Worker's control' - factories controlled by workers
- December 1917 - Banks nationalised - merged into 'People's Bank of the Russian Republic'
- Power given to the workers and peasants was bad for economy - inflation and less production
- December 1917 - Supreme Council of the National Economy (Vesenkha) set up to supervise economy
- Was a tension between proletariat and government
War communism and the NEP
Why was War Communism introduced?
- Ideological - They saw WW1 as a destruction of the old world which gave way for Marxism. Nationalism was a way of realising this dream. It was a liberation from capitalism
- Response to economic collapse - Drastic measures were needed to win civil war after WW1
- Reaction to early Bolshevik excesses - The initial Bolshevik decrees didn't work very well
What were the key features of War Communism?
- Nationalisation - only workplaces with less than 10 workers were exempt
- All industry placed under control of the state through Vesenkha
- Hierarchical structures in industry - managers instilled discipline into workers
- Military-style discipline - Execution for those who striked. Volunteering expected
- Private trading banned - Trade controlled by state; however black market thrived
- Money replaced by batering because of inflation
- Forcible requisitioning of food - Seized food from peasants which led to tension and violence
- Rationing - Despite food shortages, workers in city and Red Army were fed
- War communism helped Red Army win war, but left economy in state of collapse
Why was the NEP introduced in 1921?
- Economic considerations - Industry and agriculture production was very low. There was a huge famine and soliders had to be resettled into civilian life
- The unpopularity of War Communism - rationing was unpopular among bourgeoisie and peasants. Introduction of managers unpopular with workers
- The Tambov Rising - peasants reacted violently to the seizing of grain. Revolt was put down by a huge military force. This was among other revolts that showed the need for change
- The Kronstadt Mutiny - Previously loyal sailors revolted because of the increasing control of the Bolsheviks - shocked Lenin as they were big part of revolution
What were the key features of the NEP?
- End to requisitioning - replaced by taxation so peasants could sell remaining food at a profit
- No more forced programme of collectivisation
- Basically a compromise with the peasantry
- Small-scale industry privatised
- In SOEs, piecework and bonuses were used to raise production
- Reintroduction of currency in 1921
- Legalisation of private trading (to stop black markets)
- Development of 'Nepmen', small-scale business owners…